Lumina Copper Corp.
TSX VENTURE : LCC

Lumina Copper Corp.

February 08, 2011 19:06 ET

Lumina Closes $15.45 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Lumina Copper Corp. (TSX VENTURE:LCC) ("Lumina") is pleased to announce the closing, on February 8, 2011, of the non-brokered private placement announced on January 12, 2010. Lumina issued 3,000,000 common shares at a price of Cdn.$5.15 per common share for aggregate gross proceeds of approximately Cdn.$15.45 million (the "Offering").

All of the common shares issued pursuant to the Offering are subject to a four-month hold period and may not be traded until June 9, 2011. In accordance with applicable securities laws and the policies of the TSX Venture Exchange, Lumina has agreed to pay finder's fees with respect to the Offering, amounting to Cdn.$540,750 in cash commissions. The Offering and payment of the finder's fees are subject to the receipt of final acceptance from the TSX Venture Exchange.

The funds raised will be used to finance the expanded exploration and development program at Lumina's Taca Taca copper/gold/molybdenum project located in Salta Province, north western Argentina and for other general corporate purposes. As a result of the initial positive results from the drill program initiated in August 2010, the exploration and development program has been significantly expanded to include:

  • a drill program totalling approximately 43,000 meters, including geotechnical drilling
  • comprehensive metallurgical testing program
  • engineering studies, including mine planning, process engineering and design, infrastructure layouts and logistics including transportation, water and power supply

The expanded exploration and development program is expected to be completed during the fourth quarter of 2011.

The Taca Taca copper/gold/molybdenum project, comprising approximately 2,500 hectares, is located in the Puna region of north western Argentina in Salta Province, approximately 230 kilometres west of the provincial capital of Salta and 90 kilometres east of the world's largest copper mine, Escondida.

On October 9, 2008, Lumina announced it had received an independent National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Taca Taca project that at a 0.4% copper equivalent cut-off contained inferred mineral resources of 841 million tonnes grading 0.64% copper equivalent, containing 8.71 billion pounds of copper, 2.97 million ounces of gold and 333.70 million pounds of molybdenum(1).

Additional information on the Taca Taca project, including the NI 43-101 technical report "Amended Taca Taca Technical Report" dated January 22, 2010 by Robert Sim, P.Geo., can be found on Lumina's website (www.luminacopper.com) and on SEDAR (www.sedar.com).

Leo Hathaway, P.Geo., Vice President, Exploration and the Qualified Person (as defined by NI 43-101) for the Taca Taca project, has reviewed and approved the content of this press release.

(1) The copper equivalent cut-off grade used in the calculation of the mineral resource estimate was determined using US$1.50 / lb copper, US$600 / oz gold and US$6.00 / lb molybdenum and was not adjusted for metallurgical recoveries as these remain uncertain. The formula used in the calculation was as follows: CuEQ = Cu% + (Au g/t x 0.583) + (Mo% x 6).

LUMINA COPPER CORP.

David Strang, President & CEO

CAUTION REGARDING FORWARD-LOOKING STATEMENTS: This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the timing of completion of the expanded exploration and development program, the future price of gold, copper and molybdenum, the timing of exploration activities, the estimation of mineral reserves and mineral resources, the results of drilling, estimated future capital and operating costs, future stripping ratios, projected mineral recovery rates and Lumina's commitment to, and plans for developing any of its projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lumina Copper to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of Lumina's projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, copper and molybdenum, as well as those factors discussed in the sections relating to risk factors of our business filed in Lumina's required securities filings on SEDAR. Although Lumina has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.

There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Lumina does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Service Provider (a term that is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information